Thai Beverage (ThaiBev) has successfully raised THB38,000 million ($1.51 billion) from issuing Thai Baht debentures that have been close to three times over subscribed.
The debentures, which are a long-term debt instrument, comprise an initial principal of THB 28,000 million and a greenshoe option of THB10,000 million. They have been assigned an AA(tha) rating by Fitch Ratings, which is considered investment grade.
The sum was raised through a private placement to institutional investors and high net-worth investors.
The debentures were issued in three tranches — three-year maturing 2028 THB11,000 million zero coupon 1.72% p.a.; five-year THB24,000 million with a fixed coupon rate of 1.90% p.a.; 10-year maturing 2035 THB3,000 million with a fixed coupon rate of 2.37% p.a. and a call option exercisable after the fifth year.
Collectively, the debentures have a weighted average tenor of 4.82 years and a weighted average coupon rate of 1.89% p.a.
The proceeds will be used to repay existing debts including exercising the call options on two outstanding debentures in September 2025.
Source: The Edge Singapore